QuickBooks Online provides a range of four distinct versions tailored for businesses. Deciding between QuickBooks Online, QuickBooks for Self-Employed, or other QuickBooks versions may seem daunting. If you’re struggling to determine the most suitable QuickBooks product version for your business, this guide is here to help.
DIFFERENT QUICKBOOKS ONLINE VERSIONS
Intuit created QuickBooks, a complete accounting software suite, to assist companies of all sizes to manage their accounts accurately and effectively.
Known for its intuitive layout, QuickBooks has a number of tools that make financial obligations easier, like:
- The billing processes
- Invoice tracking
- Handling payroll
- Inventory control
- Basic sales reporting
Each QuickBooks product varies in pricing, features, usability, and target audience. Whether managing finances on-the-go with QuickBooks Online or utilizing the robust capabilities of QuickBooks Desktop Enterprise, there’s a QuickBooks version suited for every business’s unique needs.
There are five different levels of QuickBooks Plans:
- Easy or Simple Start: Suited for small service businesses that have employees and issue invoices regularly.
- Essentials: Suitable for small businesses needing to assign hours worked to customers, track bills due, and provide access for up to 3 users
- Plus: Best for retailers, wholesalers, contractors, and other small businesses requiring inventory tracking, job costing, budgeting, and access for up to 5 users.
- Advanced: Suitable for enterprise or midsize businesses seeking fixed asset accounting, advanced reporting, custom user permissions, a dedicated support manager, and access for up to 25 users.
- Self-Employed: Best for small service business owners that report business income on Schedule C of their personal tax return, have no employees, don’t need to track time, and issue only a few invoices per week.
Let’s discuss and compare them briefly.
QUICKBOOKS ONLINE
Ideal for small businesses seeking user-friendly, cloud-based accounting software with robust mobile applications, QuickBooks Online, introduced in 2004, boasts over two million users. Renowned for its powerful accounting features, extensive capabilities, integration with 750+ platforms, and comprehensive mobile apps, it stands out as a top recommendation in the realm of accounting solutions.
QuickBooks Online provides an extensive array of features and automation, encompassing essential accounting functions, invoicing, expense tracking, accounts payable, contact management, project management, inventory, budgeting, and beyond. While occasional navigation challenges may arise, QuickBooks Online is exceptionally user-friendly overall.
Pros
- Cloud-based accessible from any device with internet access
- Mobile apps
- Impressive features set
- 750+ third-party app integrations to build your ecosystem
- User-friendly interface
Cons
- Customer support
- Potentially expensive
- Limited customization capabilities for reports and templates.
- Requires a stable Internet connection to function.
Pricing
There are four price tiers for QuickBooks Online, and each has different features:
Simple Start: $30/month — This package, which is intended for small enterprises, includes basic capabilities like monitoring income and expenses, creating invoices, and providing basic reports.
Essentials: $55/month — This plan comes with all the capabilities found in Simple Start along with time monitoring, bill management, and support for up to three people.
Plus: $85/month — The Plus plan includes all the capabilities found in the Essentials plan in addition to tracking project profitability, inventory, and up to five user support.
Advanced: $200/month – Aimed at larger enterprises, the plan offers all the features of the Plus plan along with additional features, including configurable user permissions, sophisticated reporting and analytics, and support for up to 25 users.
QuickBooks Online is also the only product on this list that offers a bookkeeping add-on called QuickBooks Live Bookkeeping, where small business owners can receive professional accounting help from a QuickBooks expert. The downside of QuickBooks Online is that customer support is a bit lacking, and the subscription fee can be a bit expensive for smaller businesses needing advanced features.
QuickBooks Online Plans Comparison:
|
|
Self-Employed |
Simple Start |
Essentials |
Plus |
Advanced |
|
Pricing |
$20 |
$30 |
$60 |
$90 |
$200 |
|
Users Included |
1 |
1 |
3 |
5 |
25 |
|
Send invoices |
Limited functionality |
✓ |
✓ |
✓ |
✓ |
|
Connect Bank Accounts |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Print Balance Sheet |
✕ |
✓ |
✓ |
✓ |
✓ |
|
Print Checks |
✕ |
✓ |
✓ |
✓ |
✓ |
|
Manage Unpaid Bills |
✕ |
✕ |
✓ |
✓ |
✓ |
|
Track Time & Add to Invoices |
✕ |
✕ |
✓ |
✓ |
✓ |
|
Track Inventory & Cost of Goods Sold (COGS) |
✕ |
✕ |
✕ |
✓ |
✓ |
|
Track Activity by Project, Class & Location |
✕ |
✕ |
✕ |
✓ |
✓ |
|
Advanced Reporting |
✕ |
✕ |
✕ |
✕ |
✓ |
|
Fixed Asset Accounting |
✕ |
✕ |
✕ |
✕ |
✓ |
|
Dedicated Customer Service Representative |
✕ |
✕ |
✕ |
✕ |
✓ |
QUICKBOOKS SELF-EMPLOYED: BEST FOR FREELANCERS
Best for freelancers, contractors, and other self-employed individuals in need of basic bookkeeping and tax support.
QuickBooks Self-Employed is different from the other QuickBooks Products in that it isn’t quite accounting software. QuickBooks Self-Employed is tax software created to help freelancers manage their finances.
QuickBooks Self-Employed is an easy-to-use, cloud-based software with strong mobile apps. The features are designed specifically for freelancers to address needs such as estimating quarterly taxes, filing Schedule Cs, and tracking deductions. You can easily separate personal and business expenses, which is ideal for freelancers who don’t have separate business bank accounts. Not only does QuickBooks Self-Employed help freelancers navigate the scary waters of estimated quarterly taxes, but it also gives them basic bookkeeping tools to track income and expenses.
Pros
- Designed for freelancers
- Good tax support
- Keep track of individual and business expenditures
- Automatically record business-related mileage with a built-in tracker.
- Generate invoices, monitor payments, and handle customer interactions all within one integrated platform.
Cons
- Don’t include functionalities like inventory management and payroll.
- Lacks multiple user support
- Unscalable
Pricing
There are three price tiers for QuickBooks Self-Employed:
- Self-Employed: $20/month – With basic bookkeeping tools
- Self-Employed Tax Bundle: $30/month – includes a TurboTax Self-Employed subscription.
- Self-Employed Live Tax Bundle: $40/month – Unlimited help from a CPA all year round.
While QBSE is a great option for freelancers needing assistance with federal taxes, there is currently no state tax support offered with this software.
HOW TO CHOOSE THE RIGHT VERSION OF QUICKBOOKS ONLINE FOR YOUR BUSINESS
If you checked the overview of each QuickBooks Online product, you may already have an idea of which version of QuickBooks is best for your business. If not, don’t worry. These five questions will help you narrow down your search and find what you’re looking for.
- Which QuickBooks Online subscription is suitable for your needs?
Determine the appropriate QuickBooks Online subscription Based on your business size and the specific features you require. For instance, if you’re a freelancer or solopreneur, Self-Employed is the most suitable option. QBO Simple Start is ideal for small businesses seeking to monitor assets and liabilities. On the other hand, if you need to keep track of unpaid bills, QBO Essentials is a better choice, while QBO Plus is recommended for those requiring inventory and project management features. Lastly, for businesses scaling up to 25 users, the QBO Advanced plan is the recommended upgrade.
- Is QuickBooks Online better than QuickBooks Desktop?
QuickBooks Online may be preferred over QuickBooks Desktop for those who favor cloud-based accounting. The key advantage lies in its accessibility from any internet-enabled device. If you want to explore the detailed differences, check out our blog: QuickBooks Online vs Desktop comparison.
